Monday, November 28, 2016

Rental industry and investment property management predictions for 2017- our second topic of a 3 part series

In our year-end series about property management trends in the next year, we first talked about how online payment adoption among tenants will continue to grow in 2017. 
Next, let’s talk about how new renters insurance offerings will enable property managers to drive more consistent insurance requirements within leases and rental agreements

In the year ahead, new renters insurance offerings will enable property managers to drive more consistent insurance requirements within leases and rental agreements. 
Some lease agreements advise (and in some cases, require) tenants to carry renters insurance to protect from loss or damage, but this hasn’t quite hit the tipping point of an industry standard. Even when part of a lease, tenants often fail to get coverage, or show proof of coverage at lease signing but don’t maintain the policy, and property managers haven’t had great tools to follow up, leaving both the tenant and property unprotected. To compound the issue further, renters insurance has historically had a high barrier to entry, especially in locations where many city dwellers don’t own cars and cannot simply add coverage to existing policies.

But over the past several years, carriers offering renters insurance have been working with rental software vendors to build more direct, competitively priced coverage made available through existing software platforms, which we expect will allow more property managers to offer tenants this standalone coverage as a direct add-on through tenant portals and ePay software. 

For our final entry for this series, we’ll be posting about how mobile and related technology will continue to deliver new solutions to specific areas of leasing and management for rental properties.

Friday, November 18, 2016

3 rental industry and investment property management predictions for 2017

Each year around this time, the industry tries to gauge where we are headed in the next year. Will this be a groundbreaking year in property management, or business as usual?

While it’s hard to make concrete predictions, it’s clear that technology will continue to have a major impact on the solutions available for property managers, and by extension- renters, vendors and owners, which will improve the efficiency, effectiveness and consistency of property management without raising overhead costs for the business or for owners significantly.  Together, this presents huge ROI opportunities for property management.

In a 3-part blog series, we’ll be looking at three predictions about how technology will change the property management and rental industry in 2017.
Our first is that online payment adoption among tenants will continue to grow
When was the last time you noticed someone in a grocery store writing a check?  It doesn’t happen very often.  According to national credit agencies, 94% of people use debit, credit, mobile or related payment methods for everyday purchases.  Here at RD House, 83% of our tenants in the past year regularly use online payment for rents, and we expect this to continuing to follow general consumer payment trends.  Today’s renters are constantly connected to their digital devices, and are quickly dropping what’s becoming an antiquated medium to pay their rent.  Electronic payments are not only easier and more convenient for renters, they are also far more convenient for property managers and owners from an administrative and transaction tracking perspective.  And, the time saved from all that paper transaction handling cuts the turnaround time for vendor and owner funds disbursement.

Next in our series, we’ll be posting about how these other areas might be changing in the year ahead:
  • How new renters insurance offerings will enable property managers to drive more consistent insurance requirements within leases and rental agreements, and
  • How mobile and related technology will continue to deliver new solutions to specific areas of leasing and management for rental properties.